[farber] >From: "Robert J. Berger" <[EMAIL PROTECTED]> >Date: Mon, July 16, 2007 4:58 pm > > >New OECD report shows limitations of US broadband public policy >By Eric Bangeman | Published: July 15, 2007 - 10:28PM CT > >http://arstechnica.com/news.ars/post/20070715-new-oecd-report-shows-limitations-of-us-broadband-public-policy.html > >The Organization for Economic Co-operation and Development has just >released a 319-page report titled "OECD Communications Outlook >2007" (PDF >http://www.oecdbookshop.org/oecd/get-it.asp?REF=9307021E.PDF&TYPE=browse).
> As you may have guessed by the title >and the size, it's a comprehensive look at the state of the >telecommunications industry around the world. Of particular interest >is the section on broadband deployment, which tracks usage, >deployment, and pricing trends over the past couple of years. >Overall, broadband has become faster and cheaper, especially in >countries where there are a large number of cable and DSL providers. > >Pricing >DSL prices fell on average by 19 percent from September 2005 to >October 2006, while comparable speeds jumped by 29 percent. Cable >broadband also got cheaper, dropping 16 percent in price while >getting 27 percent faster. > >The OECD ranked countries both on affordability of broadband packages >and price per megabit. Somewhat surprisingly, the US is at the cheap >end of the spectrum when it comes to the range of prices, coming in >at number four behind Sweden, Denmark, and Switzerland. As of October >2006, the cost per month of broadband service in the US ranged from >$15.93 at the low end to $191.20 at the opposite extreme. Swedish >broadband ranged from $10.79 to $46.74, Denmark from $11.11 to >$105.10, and Switzerland's from $12.53 to $55.65. If AT&T's hard-to- >find $10-per-month DSL were considered, the standing of the US would >surely improve. > >Keep in mind that in the US, that $15.93 is likely to buy you a >768Kbps/128Kbps DSL connection, while the $19.87 per month minimum in >Japan will result in much faster service. > >On the other hand, when the metric switched to cost per megabit per >second, the US did not fare so well, slipping to 12th out of the 30 >countries ranked. In the best-case scenario, broadband in the US cost >$3.18/Mbps but could be as expensive as $20.74/Mbps. As one might >expect, given their high speeds and low broadband costs, Japan and >Korea were at the top of the list. Japanese broadband is as cheap as >$0.22/Mbps, while Korea is $0.42/Mbps. Sweden performed very well in >the cost per megabit category too, with prices as low as $0.35/Mbps. > >Competition is key >The OECD notes that the broadband situation is better in areas with >multiple broadband options. "Price decreases and improved services >have been the most marked in markets characterized by intense >competition," says the report. "Competition may be the product of >regulatory intervention, as in the case of local loop unbundling, or >may be the result of new infrastructure-based competition." > >The countries with the lowest cost per megabit per second are >generally characterized by two things: a significant fiber >infrastructure and a healthy amount of competition. In Japan and >Korea, for instance, fiber is widespread, resulting in the fastest >residential broadband speeds available anywhere. In Europe, the >regulatory environment allows consumers in many countries to choose >from any number of DSL and cable providers. When Nobel Intent >correspondent Chris Lee moved into his flat in the Netherlands, he >had no less than three cable and three DSL providers competing for >his business, including one companyKPNthat offered both. France is >another country with abundant broadband competitionand it has the >fifth-cheapest broadband in the world in terms of price per Mbps. > >In contrast, the Federal Communications Commission's policy of >deregulation (http://arstechnica.com/news.ars/post/ >20050804-5168.html) has left most consumers faced with duopolies (at >best) and de facto monopolies (I live over 20,000 feet from the >nearest DSLAM in Chicago, so DSL isn't an option for me). The >situation is such that the nation as a whole is a broadband laggard, >according to one FCC commissioner (http://arstechnica.com/news.ars/ >post/20061109-8185.html). As a result of the FCC's policies, >competition based on price and speed is spotty at best, and fiber >deployments are in their early stages. > >The FCC's vision of competition entails different broadband modes >(e.g., cable versus DSL) rather than different providers offering the >same type of service, which is why there have been rumblings about an >"open access" requirement for the upcoming 700MHz auction. The FCC is >on the wrong track, according to the OECD's reasoning. "Regulatory >decisions across most OECD countries to allow the fixed PSTN's >incumbents local loop to be unbundled has been a major factor in the >development of OECD communications markets and stimulating the >development and competitive provision of broadband offers," explains >the report. > ><snip> > > > >Robert J. Berger - Internet Bandwidth Development, LLC. >Voice: 408-882-4755 eFax: +1-408-490-2868 --------------------------------------------------------------- WWWhatsup NYC http://pinstand.com - http://punkcast.com --------------------------------------------------------------- _______________________________________________ Discuss mailing list [email protected] http://lists.isoc-ny.org/mailman/listinfo/discuss
